European antimonopoly authorities have approved a deal to merge the European assets of the Turkish manufacturer of household appliances Arcelik and the American company Whirlpool Corp. This is reported in the press release of the EC.
From the EC's point of view, the deal will not cause competition problems, given the availability of alternative suppliers in the countries of the European Economic Area.
October 11 Competition and Markets Authority UK (UK Competition and Markets Authority, CMA) sent the deal to an in-depth investigation. CMA believes that the deal could reduce consumer choice in the segment of production of washing machines and dishwashers, as well as kitchen appliances,
In January 2023, Ardutch B.V., a subsidiary of Arçelik, and Whirlpool EMEA Holdings LLC, a subsidiary of Whirlpool Corp., signed a final agreement to establish a new independent home appliance manufacturing company in Europe.
Under the agreement, Ardutch and Whirlpool will transfer their European subsidiaries to the new company. As a result of the transaction, 75% in the new company will belong to Ardutch B.V., and 25% to Whirlpool.
Upon completion of the transaction, the new company will become the largest supplier of washing machines and dishwashers in the UK, whose market volume in this sector exceeds 3.8 billion pounds ($ 4.67 billion).
The agreement includes 38 European subsidiaries of Whirlpool and 9 production sites located in Italy, Poland, Slovakia and the UK, as well as 25 European subsidiaries of Arçelik and 2 production facilities in Romania.
The new company will produce, sell and provide after-sales service of branded household appliances under the brands Arçelik (Grundig, Arctic, Elektrobregenz, Flavel and Leisure) and Whirlpool (Indesit, Hotpoint, Ignis, Privilege and Bauknecht). The company will have regional rights to the Beko, Blomberg and Altus trademarks of Arçelik, as well as to the Whirlpool brand for a period of 40 years.
In addition, the parties will sign an agreement on the purchase and sale of shares of Whirlpool enterprises in the UAE and in Morocco to Ardutch B.V. for 20 million euros in a separate transaction.
Arçelik is a leading Turkish company for the production of household appliances. Arçelik includes subsidiaries in 53 countries, 30 enterprises in 9 countries and 29 research and development centers. The company is one of the three largest manufacturers of household appliances in Europe. The headquarters is located in Istanbul (Turkey). Control of the company belongs to the largest Turkish financial and industrial conglomerate Koç Group. Arcelik owns the Beko, Blomberg, Arctic, Altus, Grundig, Flavel, Leisure, Zenith and Elektrabregenz brands.
Whirlpool is an American home appliance manufacturing company. The company has 70 production and scientific and technical centers and owns the brands KitchenAid, Maytag, Indesit, Ariston, Ignis, Privilege, Bauknecht, Polar and Laden.
